Question: Product D is produced for $60 per gallon, including a $5 per gallon fixed cost. Product D can be sold without additional processing for $85
Product D is produced for $60 per gallon, including a $5 per gallon fixed cost. Product D can be sold without additional processing for $85 per gallon, or processed further into Product E at an additional cost of $19 per gallon, including a $3 per gallon fixed cost. Product E can be sold for $105 per gallon. Provide a differential analysis for further processing into Product E.
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